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Hyprop Investments Limited
Integrated annual report 2016
86
REMUNERATION REPORT
continued
Individual performance reviews include:
•
•
Professional conduct
•
•
Business processes
•
•
Customer service
•
•
Business operations
•
•
Employee management
•
•
Implementation of company strategy.
Company key deliverable review targets
The executive committee sets key performance deliverables annually
at property and company levels. These are approved by the
remuneration committee each year.
Performance against the company deliverable targets carries a 90%
weighting, while individual reviews carry a 10% weighting at executive
and senior management level.
Key performance deliverables for 2016 were:
Weighting
%
Performance on target
Stretch target
KPI
outcome
% Performance achieved
Financial: net
distributable
income growth
33
8% net income growth
year-on-year
10% and above
130
14,2% net distributable income
growth year-on-year
(1)
Financial budget
management
28 On budget
Exceed budget by 3%
130 Exceeded budget by 5,2%
(1)
Leasing: vacancy
movement,
rentals,
escalations and
administration
18,5
Vacancy movement: 0%
movement year-on-year.
Rentals sustained at same
rate. Rental escalation on
new leases 8,9%. Rental
escalations on renewals 5%.
Administration: 2%
outstanding
documentation.
Vacancy movement – reduced
by 5% or more. Rentals achieved
7,5% more than previous rate.
Rental escalation on new leases
10% or more. Rental escalations
on renewals 7,5% or more than
previous rate. Administration
0% outstanding documentation.
100
Reduced vacancies by 45%.
Retail rentals 7,0% more than
previous rental achieved. Office
rentals less than previous rental
achieved. 8,1% escalations
achieved. 15% of lease
documentation still in process.
(2)
Tenant arrears:
deposits and total
outstanding
6,5
Total outstanding tenant
arrears: 2% outstanding as
a % raised of rent roll.
Deposits: 3% outstanding
as a % of deposits raised.
Total outstanding tenant
arrears: 0% outstanding as a %
of rent roll raised. Deposits: 0%
outstanding as a % of deposits
raised.
115
0,50% outstanding arrears
compared to what was raised
on tenant statement.
(2)
Operations:
masterfile, waste
recycling and
energy saving
7
Masterfile: 90% complete.
70% waste recycled.
3% kWh energy saving.
Masterfile 100% complete. 75%
waste recycled. Energy saving
5% or more kWh saving.
120
92,1% masterfiles complete. 78%
waste recycled. 3% kWh energy
saving.
(2)
Trading density
2 1% increase year-on-year
Exceeds 3% increase year-on-
year
130 5,2% trading density growth
(2)
Footfall
1
1% increase year-on-year
Exceeds 3% increase year-on-
year
85 0,4% decrease year-on-year
(2)
BBBEE:
procurement
3
60% of all procurement
are from companies with
a BEE level of 1 to 4
70% of all procurement are
from companies with a BEE level
of 1 to 4
130
84,5% procurement from
companies with a BEE level of
1 to 4
(2)
BBBEE:
employment
1
50% of all new
appointments are black
61% and more of all new
appointments are black
130
88% new appointments
were black
(2)
Total
100
121
(1)
Based on the group portfolio
(2)
Based on SA portfolio only
(3)
Subject to the final ratification by the remuneration committee in November 2016
SCORING METHODOLOGY
Underperformed
Achieved 70% of target
Below expectations
Achieved 80% of target
Solid performance
Achieved 100% of target
Above expectations
Achieved 115% of target
Stretch
Achieved stretch targets (130% of target)